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01-26-2000 HUCMRegular Meeting January 26, 2000 Members Present: President, Roger Gilmer; Vice President, Paul Ackland; Secretary David Wetterling; Commissioner, Douglas Ward; General Manager Kadrmas, and Attorney Marc Sebora. President Gilmer called the meeting to order at 3:07 p.m. Commissioner Ward made a motion to approve the minutes of December 29, 1999. The motion was seconded by Vice President Ackland and carried. Vice President Ackland made a motion to ratify the payment of bills in the amount of $2,151,196.78 (detailed listing is in payables book). Secretary Wetterling seconded the motion which passed. Secretary Wetterling made a motion to award the bid recommended by Ulteig Engineers for the purchase of the McLeod Substation transformer to Pauwels Transformers. The motion was seconded by Vice President Ackland and approved unanimously. Manager Kadrmas informed the Commission that the purchase of land for the McLeod Substation was approved by Hutchinson City Council on January 25, 2000. The purchase was for 13.57 acres of land at $6,000 per acre from Malcolm Schwarze. The Closing is to take place February 15, 2000. Vice President Ackland made a motion to award the firm bid of Border States Electric for the purchase of 1/0 15 kv cable for stock. Commissioner Ward seconded by motion which passed unanimously. Commissioner Ward made a motion to purchase a Maxi Sneaker replacement approving requisition #12835. Vice President Ackland seconded the motion and the approval was unanimous. Vice President Ackland made a motion to approve requisition #12778 to Scharber & Sons for a trencher trailer. Secretary Wetterling seconded the motion which carried. Secretary Wetterling made a motion to approve requisition #12730 to RESCO for wire. Vice President Ackland seconded the motion which passed unanimously. Secretary Wetterling made a motion to approve requisition #12791 to RESCO for wire. Vice President Ackland seconded the motion and it was unanimous. Secretary Wetterling made a motion to approve requisition #12795 to General Electric for the purchase, or repair, of fuel nozzles for Unit #1. Vice President Ackland seconded the motion and it passed unanimously. Vice President Ackland made a motion to approve requisition #12832 to Aspen Equipment Company for the purchase of a new air compressor. Secretary Wetterling seconded the motion which carried unanimously. Commissioner Ward made a motion to approve requisition #12864 to Donaldson Gas Turbine Systems for intake filters. Secretary Wetterling seconded the motion which carried. Reports for each division were presented. Don Nelson made a presentation for the Electric Transmission Division and Don Merkins for the Electric Production Division. John Webster was unable to be present. Manager Kadrmas informed the Commission that a new date for starting up the new Unit #9 is May 12, 2000, which would still meet our absolute deadline of June 1St. An informational meeting will be set up for 7:00 p.m. February 23, 2000, at City Center to inform affected residence of our intentions to build a transmission line to the McLeod Substation. Invitations will be sent next week. The building renovation is progressing with a finish date of June, 2000. The consultant report has been completed for the damage analysis of Unit #1 boiler tubes showing a manufacturer's defect in design and materials used. The annual Commission and City Council meeting will be held at 4:00 p.m. on February 22nd, in council chambers. The Commission viewed a video on Mid - Continent Area Power Pool. Vice President Ackland made a motion to increase the salary of the General Manager by four percent. Seconded by Secretary Wetterling the motion carried. There being no further business, Secretary Wetterling made a motion to adjourn. Seconded by Commissioner Ward the motion carried. David Wetterling, Secretary ATTEST Roger Gilmer, President . -� _3 Regular Meeting January 26, 2000 Members Present: President, Roger Gilmer; Vice President, Paul Ackland; Secretary David Wetterling; Commissioner, Douglas Ward; General Manager Kadrmas, and Attorney Marc Sebora. President Gilmer called the meeting to order at 3:07 p.m. Commissioner Ward made a motion to approve the minutes of December 29, 1999. The motion was seconded by Vice President Ackland and carried. Vice President Ackland made a motion to ratify the payment of bills in the amount of $2,151,196.78 (detailed listing is in payables book). Secretary Wetterling seconded the motion which passed. Secretary Wetterling made a motion to award the bid recommended by Ulteig Engineers for the purchase of the McLeod Substation transformer to Pauwels Transformers. The motion was seconded by Vice President Ackland and approved unanimously. Manager Kadrmas informed the Commission that the purchase of land for the McLeod Substation was approved by Hutchinson City Council on January 25, 2000. The purchase was for 13.57 acres of land at $6,000 per acre from Malcolm Schwarze. The Closing is to take place February 15, 2000. Vice President Ackland made a motion to award the firm bid of Border States Electric for the purchase of 1/015 kv cable for stock. Commissioner Ward seconded by motion which passed unanimously. Commissioner Ward made a motion to purchase a Maxi Sneaker replacement approving requisition #12835. Vice President Ackland seconded the motion and the approval was unanimous. Vice President Ackland made a motion to approve requisition #12778 to Scharber & Sons for a trencher trailer. Secretary Wetterling seconded the motion which carried. Secretary Wetterling made a motion to approve requisition #12730 to RESCO for wire. Vice President Ackland seconded the motion which passed unanimously. Secretary Wetterling made a motion to approve requisition #12791 to RESCO for wire. Vice President Ackland seconded the motion and it was unanimous. 1�N Secretary Wetterling made a motion to approve requisition #12795 to General Electric for the purchase, or repair, of fuel nozzles for Unit #1. Vice President Ackland seconded the motion and it passed unanimously. Vice President Ackland made a motion to approve requisition #12832 to Aspen Equipment Company for the purchase of a new air compressor. Secretary Wetterling seconded the motion which carried unanimously. Commissioner Ward made a motion to approve requisition #12864 to Donaldson Gas Turbine Systems for intake filters. Secretary Wetterling seconded the motion which carried. Reports for each division were presented. Don Nelson made a presentation for the Electric Transmission Division and Don Merkins for the Electric Production Division. John Webster was unable to be present. Manager Kadrmas informed the Commission that a new date for starting up the new Unit #9 is May 12, 2000, which would still meet our absolute deadline of June 1 st. An informational meeting will be set up for 7:00 p.m. February 23, 2000, at City Center to inform affected residence of our intentions to build a transmission line to the McLeod Substation. Invitations will be sent next week. The building renovation is progressing with a finish date of June, 2000. The consultant report has been completed for the damage analysis of Unit #1 boiler tubes showing a manufacturer's defect in design and materials used. The annual Commission and City Council meeting will be held at 4:00 p.m. on February 22 "d, in council chambers. The Commission viewed a video on Mid - Continent Area Power Pool. Vice President Ackland made a motion to increase the salary of the General Manager by four percent. Seconded by Secretary Wetterling the motion carried. There being no further business, Secretary W Seconded by Commissioner Ward the motion r ATTEST I� �..i Roger Gilmer, President ng made a motion to adjourn. hg, Secretary FJ 0 v CD n. R. CD CA Q) CD a r 0 CL N 0 ,0 CD m N 0 CD L v W C z X C i z 0 z C m cn n Fn z 00 oo 3 r: ° CD CD —� ( v v 0 m o cn su z 0 3 m (n n CD CA o � rn con W D (.n C) z N CCD W ((D CD c W z 0 OSmtn -1-09� mtn -i�o 5 ai � 0 5W��°� ° cn ° o CD C CD 3 tov� ° o CD -4C' = ca 0- u ccQ•� cn o m v � 0 �-„ �c°—•� m -4 CD �' aCD w0, Qv CD �m 0 CD 2) C) v �m CD CD 2) vcQ o � o CD 0) ° ° =►mac p cn � cn CA (p 0 ° CD C w� = o 03 rv� _ u'c -.ii�3 _ O �m 0 mom o CD ooCD cn 0.10 sv -' m ir�'� o° c°n co �, o""m v -�oc�n 000 000W� OCAO_.� OQ0� (D O --s Off,_, or 0►v(D D0 M I o C :)%< OC O N p0`' �. a0 spa W.m .-a p o O m Q p a O D C) 0 1V 0 O X T1N v >y °. z o O O Cn O N O 3 Q ,-. O 0 (Q O cn tt] -. (D * (h a < CD r 0 CL N 0 ,0 CD m N 0 CD L v W C z X C i z 0 z C m cn n Fn z Resolution No. 11402 Authorizing the Purchase of Real Property for the Construction of an Electrical Power Substation known as the McLeod County Substation WHEREAS, the City of Hutchinson, through the Hutchinson Utilities Commission provides electrical power service to the citizens of Hutchinson; and WHEREAS, the increased growth of the City of Hutchinson has placed a greater demand on electrical services; and WHEREAS, in order to continue to provide the best possible service for the citizens of the City of Hutchinson and to adequately provide for anticipated growth of the City of Hutchinson. THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT the Hutchinson City Council authorizes the purchase of real property in Hassan Valley Township legally described as: The North 838.29 feet of the East 705.00 feet of the South Half of the Northeast Quarter of Section 32, Township 116 North, Range 29 West, McLeod County, Minnesota for the construction of an Electrical Substation known as the McLeod County Substation. Adopted by the City Council this 25`' day of January, 2000. ATTEST: c&wft�� Gary Plot ity ministrator Marliji Torgerson ayor v9 c- m 0 0 0 3 M CD � a 3 c 0 CO co 0 N w O C) O @ CCD CO N a II CL -690 Cyn 3 0 OQ °O-1 CD cn u CD CA m m 0 cn C 0 69 N O O O CD n CD a O C W, (D CD CL P. 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QUOTE JAN 19, 2000. 2 1 FLUID FILL TIRES $150.0000 EA 3 1 6 WAY BACK -FILL BLADE W /FLOAT, SINGLE LEVER $2,340.0000 EA CONTROL 4 1 D125 BACK -HOE, 87.3" DIG DEPTH, INCLUDES $7,210.0000 EA STABILIZERS AND REMOTE THROTTLE CONTROL. 5 1 18" GENERAL PURPOSE BACK -HOE BUCKET $640.0000 EA 6 1 BACK -HOE OPERATOR CREEP CONTROL $1,585.0000 EA 7 1 60 " -14" END ROLLER, ROCK AND FROST BOOM WITH $3,050.0000 EA RESTRAINT BAR. 8 1 60 ",110,000 LB TRENCH -ALL, THREE SEASON 112 $3,271.3500 EA CUP CUTTER AND 1/2 CARBIDE CHAIN. 9 1 MANUAL CRUMBER $350.0000 EA 10 1 ELECTRIC SERVICE BLADE, CHUTE 18X21X24X1 314" $1,065.0000 EA 11 1 TRACE WIRE TUBE $130.0000 EA 12 1 REAR COMBINATION ATTACHMENT INCLUDES A P85 $13,255.0000 EA PLOW AND PLANETARY FLYWHEEL TRENCHER 13 1 COLD WEATHER START KIT $685.0000 EA PRICE ALTERED THIS ORDER MUST ANY NOT PF FILLED AT A HIGHER PRICE THAN LAST QUOTED US, OR RESPECT WITHOUT WRITTEN CONSENT By: Curt Dahl IN OUR Purchasing Agent L� M m a a W W ° 0 z 0 El M u_ K n3i D N 1 � EI m X CD 3 ;a '0 -L W N o p G) - N _ J �i < y x N N O Z � co m t0 O O t0 q CD 3 ;a '0 -L o p G) - N _ < y x v Z co m q CA a r Mm z ° G) O p o M Z 0 It N � D CO M v 0) ° N m n A N ca J co O 4 Q: O O 0 0 0 0 N T ZL L N N 0 0 0 T J N N O O CD 3 0 cn a' o' 3 w w V X ^C ` / Ca � � O m Z N C � � r Z ` 3 � CO) � 3 n m y O 2 7 N c v v c� t D A n D Z n A W i N 4 ;a '0 -L o p G) - N _ < y x v Z q 0 cn a' o' 3 w w V X ^C ` / Ca � � O m Z N C � � r Z ` 3 � CO) � 3 n m y O 2 7 N c v v c� t D A n D Z n A W i N 4 J D .0 A N C1 g y O D m Q. ; N Cl) �o c v �a C C CL a W a) v 0 m _z 0 C t2 4 v v v � m m � r FO O O O O O O O tD C C 3 N � :° _o G O O O oo X m m n O � J v c O O o O Z r N � 0 °o o °� o O z O C C O O M O crn 0 0 c n cv c F- 0 m W _ Icn m m z CO) � _ M cn D o M o o A A °0 00 0 0 w co O O J T o � A OCO O O O O C C 3 :° _o G O O O oo X m m n O m v c D m m o' D P. 3 'v D v D I D 3 v cn M rn O b O X C Tn Z M C C Z � zi Co O 'R y y O Z N 4 W O X CD � N 0 CL a ca cu v 0 0 Z n C M a m 3 D °1 � � x � N 0 Er d m N obi x :D 3 y co v v c � i v cu N � 3 CD -� O M m 00 Z 1 CO) O C ^ ` CD ♦ I m O O W W D o :D 3 y co C c i v cu N � 3 C. 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With the high cost of fuel and the low demand for power, this made it profitable to purchase power. The total engine hours of operation were 9133 hrs. with the total generation of 163364 MWH. The peak hourly demand reached 56.9 MWH on July 14th, 0.8 MWH over 1998 on July 151h. 1999 Projects included: 1. Preparation for the replacement of Unit # 9. 2. Replacing the building foundation on the station power building # 9. 3. Removal and replacement of the bus connection on unit # 9 Generator. 4. Repair of the inlet gearbox on unit # 1. 5. Repair of the Economizer tubes on unit # 1. 6. Upgrading the system for Y2K. 7. Engine Maintenance. UNIT # 1 - Completed its fifth year of commercial operation. Operating hours for 1999 were 3,478 hrs. and produced a combined total of 143,061 MWH of electricity. Total operating time on the gas turbine is 23,761 hours, and on the steam turbine is 20,127 hours. Up and coming events for unit # 1 - 1. 25,000 hr. overhaul for the hot section and combustor. 2. Primary air intake filter replacement. UNIT # 8 - Unit 8 operating hours for 1999 were 1947 hrs. and produced 18870 MWH of electricity. UNIT # 9 - Unit # 9 engine is presently in Houston, TX. getting rebuilt and assembled for shipment to MN. The MARK V system is operational and Clarence is programming it for our system. PROJECTS IN PROGRESS: 1. Unit # 9 preparation 2. Installation of the Gas Fuel line for Unit # 9 3. Unit # 1 maintenance Ongoing: 1. In -house training programs - operators / controllers / maintenance 2. Maintenance and preventative maintenance programs 3. Schools and seminars 4. State / Federal / Local reports 5. Relay testing and upgrading 6. Substation maintenance FYI: The Operations center / System controllers issued approximately 3,013 Powerstat Cards in 1999, during the weekday evenings and on weekends. Attached you'll find a 1998 -1999 comparison graph and figures, as per the total generation for the site and power purchased and sold. d(l�i Z Donald R. erkins Production Superintendent December 15,1999 CC: Clarenco KadrM4s Don Nelson John Webster HUC- Commissioners 1 MONTHLY STATISTICAL SUMMARY THIS YEAR LAST YEAR MWH COST /MWH MWH COST /MWH Nov -99 MWH GEN MO 22 $892.48 $40.57 10840 $204,700.74 $18.88 MWH GEN YR 163364 $2,822,945.54 $17.28 230907 $4,470,641.06 $19.36 REC MO 23002 $406,091.37 $17.65 13003 $293,522.25 $22.57 REC YR 147053 $3,865,117.83 $26.28 101965 $1,810,892.23 $17.76 DEL MO 87 $408.00 $4.69 1131 $23,968.00 $21.19 DEL YR 31071 $670,582.32 $21.58 57467 $1,199,370.42 $20.87 SYS CONT MO 23089 $8,820.00 $0.38 14134 $5,399.19 $0.38 SYS CONT YR 178124 $68,043.38 $0.38 159432 $60,903.03 $0.38 NET MWH MO 22937 $415,395.85 $18.11 22712 $479,654.18 $21.12 NET MWH YR 279346 $6,085,524.43 $21.78 275405 $5,143,065.90 $18.67 CAP SALES MO 20 $22,000.00 20 $22,000.00 CAP SALES YR 280 $362,000.00 310 $422,000.00 REG FEE MO 40.7 $3,391.67 39.5 $3,291.67 REG FEE YR $41,391.67 $40,883.34 SPIN MO 1440 $3,960.00 $2.75 864 $2,160.00 $2.50 SPIN YR 6618 $17,277.50 $2.61 3242 $8,105.00 $2.50 THIS YEAR HI PK MO 40.7 11/09/99 1800 HI PK YR 56.9 07/15/99 1500 LAST YEAR HI PK MO 39.5 11/10/98 1800 HI PK YR 56.1 07/14/98 1600 s Total Generation Unit #1 Unit #2 Unit #3 Unit #4 Unit #5 Unit #6 Unit #7 Unit #8 Unit #9 MW Revenue Cost/MW Total MW Sold 57615 $1,199,502.42 $20.82 Capacity Sales $444,000.00 Capacity Purchases $0.00 1999 Figures through November Total Generation Unit #1 Unit #2 Unit #3 Unit #4 Unit #5 Unit #6 Unit #7 Unit #8 Unit #9 U Fuel Cost a� O 0 Total Generation MW Thousands 50 100 150 Generation Fuel Cost Dollars Millions 0 1 2 3 4 5 ■ 1998 11111999 1998 MW Fuel Cost Cost/MW 230964 $4,472,655.53 $19.37 188590 $3,342,526.04 $1732 22 $815.97 $37.09 438 $11,107.93 $25.36 1326 $36,681.57 $27.66 18 $592.27 $32.90 12 $389.36 $32.45 927 $26,241.31 $28.31 35957 $848,116.38 $23.59 3674 $206,184.70 $56.12 MW Revenue Cost/MW Total MW Sold 57615 $1,199,502.42 $20.82 Capacity Sales $444,000.00 Capacity Purchases $0.00 1999 Figures through November Total Generation Unit #1 Unit #2 Unit #3 Unit #4 Unit #5 Unit #6 Unit #7 Unit #8 Unit #9 U Fuel Cost a� O 0 Total Generation MW Thousands 50 100 150 Generation Fuel Cost Dollars Millions 0 1 2 3 4 5 ■ 1998 11111999 MW Revenue Cost/MW 31071 $670,582.32 $21.58 $362,000.00 $0.00 200 250 � I I i I N 1998 01999 Total Sales MW Thousands 0 10 20 30 40 50 60 70 N N 1 E1998 Total MW Sold 11111999 R � I 1999' MW Fuel Cost CosUMW 163364 $2,822,945.53 $17.28 143091 $2,320,749.68 $16.22 47 $1,779.60 $37.86 640 $19,249.85 $30.08 454 $16,001.60 $35.25 20 $608.7e $30.44 9 $298.80 $33.20 233 $8,095.41 $34.74 18870 $456,161.83 $24.17 0 $0.00 $0.00 MW Revenue Cost/MW 31071 $670,582.32 $21.58 $362,000.00 $0.00 200 250 � I I i I N 1998 01999 Total Sales MW Thousands 0 10 20 30 40 50 60 70 N N 1 E1998 Total MW Sold 11111999 R � I TOTAL GENERATION 1999 NOV HRS MWH #1S 3230 27911 41G 3478 115180 #2 31 47 #3 192 640 #4 166 454 #5 14 20 #6 8 9 #7 67 233 #8 1947 18870 #9 0 0 --------------- - - - -- TOT 163364 OIL GALS BBLS COST 0 $0.00 0 $0.00 3508 $1,779.60 6994 $3,550.32 13691 $6,958.77 1200 $608.76 589 IC's 884 $298.80 11150 - - -- $5,662.94 0 0 $0.00 0 0 $0.00 ------------------------------------- 37132 884 $18,859.19 GAS MCF MMBTU COST TOTAL PER MWH 41 1198431 1225808 $2,320,749.68 $2,320,749.68 $16.22 #2 0 0 $0.00 $1,779.60 $37.86 #3 6356 6498 $15,699.53 $19,249.85 $30.08 #4 3601 3679 $9,042.83 $16,001.60 $35.25 #5 $608.76 $30.44 #6 $298.80 $33.20 #7 919 937 $2,432.47 $8,095.41 $34.74 #8 210955 215746 $456,161.83 $456,161.83 $24.17 #9 ------------------------------------------------------------------- $0.00 $0.00 TOT 1420262 1452668 $2,804,086.34 $2,822,945.53 $17.28 Ej PAGE 1 OF 5 1999 POWER TOTALS OFF ON TOTAL $ /MW TOTAL COST REC TOT 55915 91138 147053 $26.28 $3,865,117.83 DEL TOT -12703 -18368 -31071 $21.58 ($670,582.32) - -- - - -- SYS CONT - - -- - 68618 109506 178124 $0.38 $68,043.37 -- - -- -- -- GEN -- -- 163364 $17.28 $2,822,945.54 - -- NET MWi; - - - -- - - - - - - -- 279346 $21.78 $6,085,524.42 PART PWR ol 0 0 $0.00 $0.00 Ej PAGE 1 OF 5 PAGE 2 OF 5 1999 POWER TOTALS OFF ON TOTAL $ /MW TOTAL COST BEPC -REC 0 - 0 0 $0.00 $0.00 BEPC -DEL _ _ _ -2 -6 -8 $30.38 ($243.00) CPA -REC - -- - -- 0 0 0 $0.00 $0.00 CPA -DEL - 0 0 0 $0.00 $0.00 GSES -REC 0 0 0 $0.00 $0.00 __ _ GSES -DEL 0 -1 -1 $30.00 ($30.00) 710774 NAES -REC 6 17202 27948 $20.63 $576,493.50 NAES -DEL -1 -35 -36 $20.28 ($730.00) ALT -REC 0 0 0 $0.00 $0.00 ALT -DEL - -- - - - - - -- 0 -141 -141 $15.21 ($2,145.00) ETS SERVICE 0 $0.00 $9, 000.00 SJLP -DEL _ 0 0 0 $0.00 $0.00 IPW -REC - _-_ 0 0 0 $0.00 $0.00 ENRON -DEL -400 -6986 -7386 $27.90 ($206,080.12) --- - _ LES - - - - -- -REC ___ - - -- - -- __ 0 - -0 0 $0.00 $0.00 LES _ -REC -------- - - - - -- - PAGE 2 OF 5 PAGE 3 OF 5 1999 POWER TOTALS OFF ON TOTAL $ /MW TOTAL COST MHEB -REC 0 0 $0.00 $ 0. 0 0 _ MHEB -DEL 0 -23 -23 $30.65 ($705.00) - - MDU -REC 0 - $0.00 -- $0.00 0 0 MDU -DEL 0 0 0 $0.00 $0.00 MEAN -REC - 0 0 0 MEAN -DEL $0.00 $0.00 0 0 0 $0.00 $0.00 MLRP -REC 341 378 719 $0.00 $0.00 MLRP -DEL -105 -647 -752 $0.00 $0.00 74-117-7-8 MPC -REC 6640 10818 $20.66 $223,481.60 MPC -DEL 0 0 0 $0.00 $0.00 MP -REC 377 1978 2355 $202.43 $476,724.87 MP -DEL 0 -9 -9 $33.67 ($303.00) NEC -REC 14684 21087 35771 $22.62 $808,974.50 MEC -DEL -2 -11 -13 $31.02 ($403.20) MPW -REC - -- - -- - 0 0 - - - -- 0 $0.00 $0.00 MPW -DEL -- - - - - - -- - -- -- 0 0 0 $0.00 $0.00 PAGE 3 OF 5 I 1 1 1999 POWER TOTALS OFF I ON I TOTAL TOTAL COST NPPD -REC 0 0 0 $0.00 $0.00 NPPD -DEL 0 -2 -2 n nn [Ccn nn PAGE 4 OF 5 NSP -REC 0 20 20 $76.00 $1,520.00 NSP -DEL -2 -8 -10 $36.60 ($366.00) NWPS -REC 0 0 0 $0.00 $0.00 NWPS -DEL 0 0 0 $0.00 $0.00 OPPD -REC 0 — 0 0 $0.00 $0.00 OPPD -DEL -3 -3 -6 $31.00 ($186.00) _ OTP -REC 25554 43313 68867 $24.72_ $_1,702,316.80 OTP -DEL _ -43 -116 -159 $17.23 ($2,739.00) RPU -REC 0 0 0 $0.00 $0.00 RPU -DEL 0 0 0 $0.00 $0.00 SHP -REC 0 0 0 $0.00 $0.00 SHP -DEL -21 0 -21 $14.76 ($310.00) UPA -REC 35 40 75 $30.49 $2,286.56 UPA -DEL -261 -3021 -3282 $44.99 ($147,660.00) PAGE 4 OF 5 PAGE 5 OF 5 1999 POWER TOTALS OFF ON TOTAL $ /Mw TOTAL COST WAPA -REC 0 0 0 $0.00 $0.00 _ WAPA -DEL 0 -7 -7 $30.86 ($216.00) WPPI -REC 0 0 0 $0.00 $0.00 WPPI -DEL 0 0 0 $0.00 $0.00 MMPA -REC 0 480 480 $134.00 $64,320.00 MMPA -DEL -11863 -7352 -192151 $16.05 ($308,406.00) ENRON CAP 60 $2,000.00 $120,000.00 GRE CAP 220 $1,100.00 $242,000.00 _ GRE SPIN 2920 $2.50 $7,300.00 GRE REG 496.7 $1kw /12 $41,391.67 MPEX SPIN 3698 $0.00 $9,977.50 PAGE 5 OF 5 HUTCHINSON UTILITIES COMMISSION ANNUAL DEPARTMENT REVIEW NATURAL GAS DEPARTMENT NATURAL GAS SUPERINTENDENT JOHN C. WEBSTER January 14, 2000 I P� NATURAL GAS DEPARTMENT 1999 YEAR IN REVIEW NATURAL GAS SERVICE LINES The Natural Gas Department installed 156 service lines in 1999. This is a 15% increase based on 1998. DISTRIBUTION MAIN EXTENSIONS The following developments /extensions were piped for natural gas in 1999: • The Meadows • Country Fair Market Place • Fairway Estates - 2 "d Addition • Welcome to Our Home - Century Ave SW • Tyler St SW • Island View Heights - 3`d Addition • Prairie Senior Cottages - Bradford St SE • Rolling Meadows • Miller St Alley Arch St SW • Century Ave SW /Dale St SW Hutchinson Utilities' Natural Gas Department installed a total of: • 9,438 ft of 2" polyethylene pipe, an 82% increase based on 1998. • 12,498 ft of 4" polyethylene pipe, a 121 % increase based on 1998. r� c I DISTRIBUTION MAINTENANCE 1. Service Line Retirements 2. Service Line Relocates 29 service lines were retired in 1999 due to remodeling, demolition of buildings, leaks, or upgrades, a 16% increase from 1998. 11 service lines were relocated in 1999 due to remodeling, building additions, or unattached garage construction. This represents a 22% increase from 1998. 3. 3rd. Party Damages The Natural Gas Department experienced 10 third party hits by outside contractors in 1999. This represents a 100% increase from 1998. DEPARTMENT OF TRANSPORTATION MANDATED PROGRAMS The following DOT mandated operations and maintenance programs were completed in 1999 by the Natural Gas Department: (40 CFR Parts); 192.465 External Corrosion Control — Monitoring 192.609 Class Location Study 192.625 Odorization of Natural Gas 192.705 Transmission Lines - Patrolling t 192.706 Transmission Lines - Leakage Surveys (1 mile of transmission line is surveyed annually) 192.721 Distribution Systems - Patrolling 192.723 Distribution Systems - Leakage Surveys (Approximately 20 miles of distribution main and 920 service lines are walked each year in performing the flame ionization survey) 192.739 Inspection and Testing of Pressure Limiting and Regulating Stations (2 Stations and 10 DRS's are inspected and maintained annually) 192.741 Inspection and Testing of Telemetering and Recording Stations 192.743 Testing of Relief Valves (13 Relief valves are tested and maintained annually) 192.745 Valve Maintenance - Transmission System (23 Transmission valves are inspected and maintained annually) 192.747 Valve Maintenance - Distribution System (385 Distribution valves are inspected and maintained annually) 192.459 External Corrosion Control (59 miles of steel distribution mains, 1 mile of steel transmission line and approximately 3327 steel service lines are surveyed and maintained each year) 192.501 System Pressure Test Requirements MAJOR PROJECTS - 1999 1. Hutchinson Utilities' contractor, Northern Pipeline Construction Co. installed approximately 6800 ft of 6" polyethylene distribution main from Fair Ave SE to DRS 10 located on Hwy 22 S. A Distribution r Regulator Setting was installed on Hwy 22 S, near the HATS facility, in order to reduce the natural gas pressure from 50 psig to 25 psig. This regulating facility serves the south east corner of Hutchinson. 5310 ft of 4" polyethylene distribution main and 470 ft of 2" polyethylene distribution man was installed from the regulating facility so serve natural gas customers on Hwy 22 S and to tie into the existing distribution piping. The pipe footage installed for this project is not included in the previously cited distribution main extensions. The Hwy 22 S project was installed as designed by the Natural Gas Department. 2. Northern Pipeline Construction Company installed the metering facilities and the first phase of the service line to serve natural gas to the Unit 9 generating facility. The metering facility and service line were installed as designed by the Natural Gas Department. 3. The Minnesota Office of Pipeline Safety conducted a Specialized Audit on May 0' and 5"', 1999. This audit consisted of a review of the Natural Gas Department's operation and maintenance records. As a result of this audit, 4 items were addressed and corrected with the results returned to the Office of Pipeline Safety on May 12, 1999. s ` 4. Pinnacle Engineering, with assistance from the Natural Gas Department, prepared a Risk Management Program for the Hutchinson Propane Peak Saving Plant. The Environmental Protection Agency (EPA) has classified propane as a hazardous chemical because of its flammability characteristics. The Code of Federal Regulations (40 CFR Part 68) requires facilities that store propane in excess of 10,000 pounds to submit a Risk Management Plan and to develop and implement a Risk Management Program. It is Hutchinson Utilities Commission's policy to comply with all _....____ federal and state regulations. In the event of an emergency involving propane, Hutchinson Utilities Commission will follow the procedures outlined in our Emergency Action Plan, which has been coordinated with the Hutchinson Fire Department, the Hutchinson Police Department and the City of Hutchinson. 5. The Natural Gas Department participated in the City of Hutchinson's Block 50 rebuilding project. In order for the city to replace the water, sanitary, and storm sewer mains the existing natural gas distribution system, main and services, had to be removed. Temporary lines were installed, aboveground, to all of the businesses that required natural gas to operate. Once the city had completed the removal and reinstallation of their facilities, the Natural Gas Department then installed the permanent polyethylene distribution system, mains and service lines. MIDWEST REGIONAL GAS TASK FORCE ASSOCIATION The MRGTFA is an alliance of small Minnesota, Wisconsin and South Dakota natural gas utilities formed to protect the transportation rates of the small utilities served by Northern Natural Gas. The Natural Gas Superintendent from Hutchinson Utilities served as President of this association in 1999 and has been re- nominated as the President for the year 2000. TRAINING ATTENDANCE - NATURAL GAS DEPARTMENT Steve Sturges MEA Operations Roundtable Wayne Barreth MEA Operations Roundtable Myron Polzin MEA Leak Detection Seminar MEA Annual Operations Conference Locator Training Seminar NACE Pipeline Corrosion Seminar I Jason Sturges Jon Hombach Ron Swenson MEA Leak Detection Seminar MEA Annual Operations Conference MEA Leak Detection Seminar NACE Pipeline Corrosion Seminar John Webster MEA Annual Operations Conference MEA Operator Qualification Training MnOPS Spring Conference NACE Pipeline Corrosion Seminar The Natural Gas Department continued in house training utilizing the Midwest Energy Association's "Operator Qualification Training Course" in 1999 in preparation for the recently mandated Operator Qualification ruling from DOT.